MEXICO CITY, Oct. 28, 2021 /PRNewswire/ -- Banco
Santander México, S.A., Institución de Banca Múltiple, Grupo
Financiero Santander México (NYSE: BSMX; BMV: BSMX), ("Banco
Santander México" or "the Bank"), today announced financial results
for the three-month and nine-month periods ending September 30th, 2021.
Banco Santander México reported net income of Ps.4,843 million
in 3Q21, representing a YoY decrease of 3.7% and a QoQ increase of
2.8%. On a cumulative basis, net income for 9M21 reached Ps.12,835
million, representing a 12.5% YoY decrease.
HIGHLIGHTS
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Results (Million
pesos)
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3Q21
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2Q21
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3Q20
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%QoQ
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%YoY
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9M21
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9M20
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%YoY
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Net interest
income
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15,684
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15,770
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16,089
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(0.5)
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(2.5)
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47,039
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48,916
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(3.8)
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Fee and commission,
net
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4,447
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4,873
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4,690
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(8.7)
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(5.2)
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14,222
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13,985
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1.7
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Core
revenues
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20,131
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20,643
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20,779
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(2.5)
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(3.1)
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61,261
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62,901
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(2.6)
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Provisions for loan
losses
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4,385
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5,068
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4,596
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(13.5)
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(4.6)
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16,528
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18,111
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(8.7)
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Administrative and
promotional expenses
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10,750
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9,955
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10,429
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8.0
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3.1
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30,599
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29,813
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2.6
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Net income
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4,843
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4,713
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5,030
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2.8
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(3.7)
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12,835
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14,674
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(12.5)
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Net income per
share1
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0.71
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0.70
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0.74
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2.8
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(3.7)
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1.89
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2.17
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(12.5)
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Balance Sheet Data
(Million pesos)
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Sep-21
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Jun-21
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Sep-20
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%QoQ
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%YoY
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Sep-21
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Sep-20
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%YoY
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Total
assets
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1,669,138
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1,634,384
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1,858,684
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2.1
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(10.2)
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1,669,138
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1,858,684
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(10.2)
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Total
loans
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715,759
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710,323
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735,330
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0.8
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(2.7)
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715,759
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735,330
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(2.7)
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Deposits
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766,336
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766,663
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772,984
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(0.0)
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(0.9)
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766,336
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772,984
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(0.9)
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Shareholders´
equity
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165,020
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159,941
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151,475
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3.2
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8.9
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165,020
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151,475
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8.9
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Key Ratios
(%)
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3Q21
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2Q21
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3Q20
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bps
QoQ
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bps
YoY
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9M21
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9M20
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bps
YoY
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Net interest
margin
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4.64
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4.52
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4.50
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12
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14
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4.53
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4.78
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(25)
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Net loans to deposits
ratio
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90.27
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89.50
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91.78
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77
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(151)
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90.27
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91.78
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(151)
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ROAE
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11.96
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11.83
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13.87
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13
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(191)
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10.57
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13.49
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(292)
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ROAA
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1.10
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1.08
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1.23
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2
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(13)
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0.97
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1.20
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(23)
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Efficiency
ratio
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50.97
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47.59
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48.14
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338
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283
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48.39
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44.16
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423
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Capital
ratio
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21.46
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18.91
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17.16
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255
|
430
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21.46
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17.16
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430
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NPLs ratio
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2.85
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2.87
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2.09
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(2)
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76
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2.85
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2.09
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76
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Cost of
Risk
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2.75
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2.75
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3.13
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0
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(38)
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2.75
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3.13
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(38)
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Coverage
ratio
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117.56
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118.39
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167.94
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(83)
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—
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117.56
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167.94
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—
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Operating
Data
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Sep-21
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Jun-21
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Sep-20
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%QoQ
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%YoY
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Sep-21
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Sep-20
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%YoY
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Branches
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1,039
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1,039
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1,050
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0.0
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(1.0)
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1,039
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1,050
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(1.0)
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Branches and
offices2
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1,350
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1,352
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1,407
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(0.1)
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(4.1)
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1,350
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1,407
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(4.1)
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ATMs
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9,564
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9,534
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9,365
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0.3
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2.1
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9,564
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9,365
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2.1
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Customers
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19,499,552
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19,257,998
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18,796,611
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1.3
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3.7
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19,499,552
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18,796,611
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3.7
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Employees
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24,901
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23,512
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20,731
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5.9
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20.1
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24,901
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20,731
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20.1
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1)
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Accumulated EPS, net
of treasury shares (compensation plan) and discontinued operations.
Calculated by using weighted number of shares.
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2)
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Includes cash desks
(espacios select, box select and corner select) and SMEs business
centers. Excluding brokerage house offices.
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Héctor Grisi, Banco Santander México's Executive President
and CEO, commented: "During the quarter we continued
advancing on our strategic priorities while maintaining a strong
balance sheet and liquidity positions. Loan volumes continue
lagging, mostly among commercial loans, in line with market trends
and still soft demand conditions. However, we are optimistic, as we
have started seeing a slight sequential upturn in certain loan
segments. Another bright spot is our individual loans, which
continue outpacing the market, supported by sustained market share
gains in mortgages and auto loans. In addition, consumer and SME
loans are now showing signs of a gradual sequential recovery, as
economic activity starts to gather speed and our risk appetite in
these segments has grown correspondingly.
For the third consecutive quarter, our deposits remained
relatively stable sequentially. The high liquidity has allowed us
to focus on improving our deposit mix by favoring demand deposits
over term ones. In fact, our current deposit mix stands at 74%
demand and 26% term, our best ratio ever. Both our individual and
corporate demand deposits continue expanding at low double-digit
rates year-over-year, underscoring the success of our loyalty and
customer acquisition strategies as well as our focus on lowering
funding costs.
Our asset quality also improved during the quarter, as NPLs
continued falling, aided by improving economic conditions in
Mexico and our sound loan
portfolio, which still reflects our prudent risk management. We are
also approaching a normalized level of provisions as our operating
environment becomes healthier. Accordingly, our cost of risk has
declined to its lowest level in the last five quarters, and we
expect it to continue converging gradually to pre-pandemic
levels.
Although domestic and global economic conditions are
improving, they will likely remain uneven and challenging.
Nevertheless, our strategy remains focused on further strengthening
client loyalty and driving digitalization, with the same ambition
to become the bank providing the best customer experience in
Mexico.
We continue working on growth initiatives by leveraging a
host of new digital tools and methodologies and also by further
enhancing our internal operating processes. With a focus on prudent
and profitable growth, we continue making new investments in the
bank's transformation, mainly in IT and digitalization, while
seeking efficiencies and maintaining tight cost controls across
business lines."
3Q21 Earnings Call Dial-In Information
Date:
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Friday, October,
29th, 2021
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Time:
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09:00 a.m. (MCT);
10:00 a.m. (US ET)
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Dial-in
Numbers:
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1-877-407-4018 US
& Canada 1-201-689-8471 International & Mexico
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Access
Code:
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Please ask for
Santander México Earnings Call
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Webcast:
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https://viavid.webcasts.com/starthere.jsp?ei=1504898&tp_key=77ba22d97c
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Replay:
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Starting: Friday,
October 29th, 2021 at 1:00 p.m. (US ET)
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Ending: Friday,
November 5th, 2021 at 11:59 p.m. (US ET)
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ET Dial-in number:
1-844-512-2921 US & Canada; 1-412-317-6671 International &
Mexico Access Code: 13724245
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ABOUT BANCO SANTANDER MÉXICO (NYSE: BSMX; BMV: BSMX)
Banco Santander México, S.A., Institución de Banca Múltiple,
Grupo Financiero Santander México (Banco Santander México), one of
Mexico's leading banking
institutions, provides a wide range of financial and related
services, including retail and commercial banking, financial
advisory and other related investment activities. Banco Santander
México offers a multichannel financial services platform focused on
mid- to high-income individuals and small- to medium-sized
enterprises, while also providing integrated financial services to
larger multinational companies in Mexico. As of September
30th, 2021, Banco Santander México had total
assets of Ps.1,669 billion under Mexican Banking GAAP and more than
19.4 million customers. Headquartered in Mexico City, the Company operates 1,350
branches and offices nationwide and has a total of 24,901
employees.
INVESTOR RELATIONS CONTACT
Héctor Chávez Lopez –
Managing Director - IRO
+ 52 (55) 5269-1925
hchavez@santander.com.mx
Investor Relations Team
investor@santander.com.mx
www.santander.com.mx
LEGAL DISCLAIMER
Banco Santander México cautions that
this presentation may contain forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements could be found in various
places throughout this presentation and include, without
limitation, statements regarding our intent, belief, targets or
current expectations in connection with: asset growth and sources
of funding; growth of our fee-based business; expansion of our
distribution network; financing plans; competition; impact of
regulation and the interpretation thereof; action to modify or
revoke our banking license; exposure to market risks including
interest rate risk, foreign exchange risk and equity price risk;
exposure to credit risks including credit default risk and
settlement risk; projected capital expenditures; capitalization
requirements and level of reserves; investment in our information
technology platform; liquidity; trends affecting the economy
generally; and trends affecting our financial condition and our
results of operations. While these forward-looking statements
represent our judgment and future expectations concerning the
development of our business, many important factors could cause
actual results to differ substantially from those anticipated in
forward-looking statements. These factors include, among other
things: changes in capital markets in general that may affect
policies or attitudes towards lending to Mexico or Mexican companies; changes in
economic conditions, in Mexico in
particular, in the United States
or globally; the monetary, foreign exchange and interest rate
policies of the Mexican Central Bank (Banco de México); inflation;
deflation; unemployment; unanticipated turbulence in interest
rates; movements in foreign exchange rates; movements in equity
prices or other rates or prices; changes in Mexican and foreign
policies, legislation and regulations; changes in requirements to
make contributions to, for the receipt of support from programs
organized by or requiring deposits to be made or assessments
observed or imposed by, the Mexican government; changes in taxes
and tax laws; competition, changes in competition and pricing
environments; our inability to hedge certain risks economically;
economic conditions that affect consumer spending and the ability
of customers to comply with obligations; the adequacy of allowance
for impairment losses and other losses; increased default by
borrowers; our inability to successfully and effectively integrate
acquisitions or to evaluate risks arising from asset acquisitions;
technological changes; changes in consumer spending and saving
habits; increased costs; unanticipated increases in financing and
other costs or the inability to obtain additional debt or equity
financing on attractive terms; changes in, or failure to comply
with, banking regulations or their interpretation; and certain
other risk factors included in our annual report on Form 20-F. The
risk factors and other key factors that we have indicated in our
past and future filings and reports, including those with the U.S.
Securities and Exchange Commission, could adversely affect our
business and financial performance. The words "believe," "may,"
"will," "aim," "estimate," "continue," "anticipate," "intend,"
"expect," "forecast" and similar words are intended to identify
forward-looking statements. You should not place undue reliance on
such statements, which speak only as of the date they were made. We
undertake no obligation to update publicly or to revise any
forward-looking statements after we distribute this presentation
because of new information, future events or other factors. In
light of the risks and uncertainties described above, the future
events and circumstances discussed herein might not occur and are
not guarantees of future performance.
Note: The information contained in this presentation is not
audited. Nevertheless, the consolidated accounts are prepared on
the basis of the accounting principles and regulations prescribed
by the Mexican National Banking and Securities Commission (Comisión
Nacional Bancaria y de Valores) for credit institutions, as amended
(Mexican Banking GAAP). All figures presented are in millions of
Mexican pesos, unless otherwise indicated. Historical figures are
not adjusted by inflation.
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SOURCE Banco Santander México, S.A.